Balance Transfer Calculator

A balance transfer is worth it when the interest rate reduction is at least 0.5% and you have a significant remaining tenure (typically 5+ years). The net saving after accounting for switching costs — usually 0.5–1% of the outstanding loan as processing fees plus legal and valuation charges — must be positive, and you must reach break-even before the loan ends.

Switching costs usually include a processing fee of 0.25–1% of the outstanding loan at the new lender, plus legal charges of ₹3,000–₹10,000 and property valuation fees of ₹3,000–₹5,000. Some lenders waive the processing fee as a promotional offer. RBI prohibits prepayment charges on floating-rate loans, so your existing lender cannot charge a foreclosure penalty when you transfer a floating-rate home loan.

Yes, but fixed-rate loans may attract a prepayment or foreclosure charge of 2–4% of the outstanding amount from your current lender. Factor this into the switching cost slider. For floating-rate loans, RBI prohibits such charges — transfer is free on the prepayment side.

A balance transfer triggers a hard inquiry from the new lender, which may cause a temporary dip of 5–10 points in your CIBIL score. Once the new loan is opened and you make timely payments, your score typically recovers within 3–6 months. The impact is minor compared to the long-term saving on a large-ticket loan.

Yes — loan prepayment. If you have surplus funds, making a lump-sum prepayment on your current loan reduces the outstanding principal and total interest without any switching cost. You can also negotiate a rate reduction with your existing lender (an internal reset or conversion), which costs a nominal fee of ₹2,000–₹5,000 and avoids all switching paperwork.